"it will mean first timers will need to find tens of thousands of additional dollars to buy into the housing dream" Anyone selling "dreams" that consist of massive amounts of debt to young people should be ignored. As many first home buyers lurned into the top of the property market by the FHBG have already realised those "dreams" can quickly turn into nightmares.

I think this will Hollow out the market, the core Business today, constituting mainly of existing construction, will fall in price as demand peters out and these homes and heads out for the New home market. It will give a ripple effect, new home prices will rise initially but then home prices in general, existing and new, will defintely level out. When first home buyers realise that New homes are goin gup in price becasue they are getting the FHOG then they will turn around and head to the lower priced elements of the market, which constitues the existing or older homes segment.Hey it never hurt anyone to own an already used home, perhaps for the first time in it history, the realestate industries term of "Renovators delight" will become for once become true.